Sunday, February 17, 2013

In this recent speech at the Oxford Union, Daniel Hannan puts it just as brilliant as we have come to expect from him:

"There is a world of difference between being pro-business and being pro-market. Sometimes those two positions happen to coincide, often they do not. Corporatism is not the same thing as capitalism."

"It was the cost of compliance that drove the small providers out of the market. It was the regulation that forced the consolidation which is what created this rigged too big to fail-phenomenon in the first place."

We should not aim at a "system where a bank can not fail, but a system where a bank can fail without it being a problem - Without the taxpayer having to come and rescue it. In other words where there is a plurality of small providers each striving to offer a better service. We have the precise opposite of that, we have a series of zombie banks."

It somehow reminds me of The Five Steps of Corporatism:

1) LargeCorp cannot compete for customers, so it lobbies the government to regulate its industry.

2) Government impose expensive rules LargeCorp lobbied for, planned for, and can afford. But some of LargeCorp's competitors cannot.

3) With fever competitors LargeCorp grows into MegaCorp. It now can afford to buy other competitors.

4) The people get suspicious of the size of MegaCorp and industry consolidation. They demand more government regulation.

5) Repeat step 2, 3 and 4 indefinitely.

So much for the "too big to fail argument". That is why the leftists aiming their anger at the libertarians on this matter are erroneous, as those who with steady consistency have argued against the bailing out of both banks and companies with public funds, have been the libertarians. The same is very much true for those who enduringly, and with fierce agitation, have fought the battle against the printing of cheap money - Creating inflated capital to feed the above mentioned banks and companies, and to feed politicians wanting to score points with serving special interests.

Conservatives (i.e. not "Neoconservatives") may have disputes with the libertarians over certain important issues, but not on the topic of too much love for bloated governments.

"If I have seen further than others, it is by standing upon the shoulders of giants"(Sir Isaac Newton)

"you chose to act as if you had never been molded into civil society and had everything to begin anew. You began ill, because you began by despising everything that belonged to you."(Edmund Burke in Reflections on the Revolution in France)

"Whenever a theory appears to you as the only possible one, take this as a sign that you have neither understood the theory nor the problem which it was intended to solve"(Sir Karl Popper)

Liberty is, of course, a loftier goal. But only those who have never known disorder fail to grasp that [order] is the necessary precondition for liberty."(Niall Ferguson in Colossus)

"When every benefit received is a right, there is no place for good manners, let alone for gratitude."(Theodore Dalrymple in What is Poverty?)

"If we extend unlimited tolerance even to those who are intolerant, if we are not prepared to defend a tolerant society against the onslaught of the intolerant, then the tolerant will be destroyed, and tolerance with them. // We should therefore claim, in the name of tolerance, the right not to tolerate the intolerant."(Sir Karl Popper on the paradox of freedom in The Open Society and Its Enemies)

"Much of the social history of the Western world over the past three decades has involved replacing what worked with what sounded good. // The amazing thing is that this history of failure and disaster has neither discouraged the social engineers nor discredited them."(Thomas Sowell in Is Reality Optional?)

"Government has become ungovernable; that is, it cannot leave off governing. Law has become lawless; that is, it cannot see where laws should stop."

(G.K. Chesterton in Eugenics and Other Evils: An Argument Against the Scientifically Organized State)

"to take part in a severe contest between intelligence, which presses forward, and an unworthy, timid ignorance obstructing our progress."(The aim of The Economist)"This is the lesson: Never give in. Never give in. Never, never, never, never - in nothing, great or small, large or petty - never give in except to convictions of honour and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy."(Sir Winston Churchill, October 29th 1941, Harrow School , London)